Seniors get a boost from Town Meeting vote
Published on July 1st, 1998
STONEHAM, MA - Town Meeting members voted to allow the Retirement Board to grant a cost-of-living increase to members of the town retirement system on Monday night, but rejected the article seeking Town Meeting approval on all such increases in the future.
Two warrant articles were presented at the Special Town Meeting which brought out a considerable crowd to the Town Hall. Many of the 253 voters in attendance were town retirees looking forward to an increase in their benefits.
Article 1 on the warrant was presented by former Fire Chief William Abbott, on behalf of the Stoneham Retirement Board which sponsored the article.
Abbott informed voters that approval of article 1 would give the Retirement Board the right to grant COLA (cost-of-living-adjustment) increases each fiscal year to members of the town retirement system. Since recent legislation transferred the funding of such COLA increases from the state to cities and towns, increases for fiscal year 1999 were contingent upon Town Meeting approval of the article by July 1.
Restrictions on this authority would apply, however, according to Abbott. A 3 percent ceiling in annual increases on the first $12,000 of the retirement benefit would be stipulated. In addition, yearly state approval on the level of increase would be required prior to any Retirement Board action. Abbott explained that the increase for Fiscal Year 1999 would be 2.1 percent, as stipulated by the state, keeping in line with the current cost-of-living level.
A yes vote, he stated, would not mandate an immediate tax increase but would increase the town's unfunded liability.
"If we vote yes, there will be no increase on taxes now...Over the years, of course, it's going to cost money," said Abbott, who advised that the "worst case" scenario would call for extension of the town's unfunded liability of an additional 10 years.
The Finance and Advisory Board recommended favorable action on the article with board member John Warren advising the crowd that approval on article 1, which would allow the Retirement Board to grant the increase of 2.1 percent, would translate into an increase for individual retirees of approximately $20 per month for FY 1999.
"I know of no retirement system to deny its members of any COLA...It's time to do what's right for the retirees in Stoneham," Warren stated.
The article passed unanimously.
Voters overwhelmingly rejected warrant Article 2, which asked Town Meeting voters to assume the authority to approve COLA increases each fiscal year.
The article, sponsored by the Board of Selectmen, specifically called for special legislation authorizing Town Meeting approval of the cost-of-living increases to retirees.
On behalf of the board, Selectman Anthony Kennedy urged Town Meeting to "endorse and confirm COLA each year."
"It is important for the whole town to be aware...and participate in the process," said Kennedy.
The Finance Board again recommended favorable action which would have allowed Town Meeting voters to participate in the decision each year regarding the town's financial ability to grant an increase in retirement benefits.
"Town Meeting is the proper forum to discuss funding and budget issues," Warren stated.
Former Selectman Alice Del Rossi questioned why the Board of Selectmen would submit such an article, since "the Retirement Board knows the system A to Z."
"Have faith in your retirement board. Don't come to us as beggars every twelve months," she urged.
According to Retirement Board Chairman Janice Houghton, the thought process in sponsoring the article was the belief that "Town Meeting is where all funds should be appropriated."
The board remained neutral on the issue, she stated, accepting Town Meeting's rejection of the article.
Article 2 was amended during the meeting due to the deletion of section two which was requested by Town Counsel William Solomon since it was, what he called, "inaccurate, confusing and wrong."
"Section 2 is technically inappropriate and has no relationship to the merits of this discussion," Solomon stated.
"It is in everyone's best interest that this is correct," he said regarding proceeding with an amended article.
Failing to win voter approval on Article 2, the Retirement Board will assume the responsibility of granting COLA increases in the future.
Town Clerk John Hanright said of the evening's large turnout, "We expected much less than that.
"I was shocked to see the number of people standing in line," he stated and credited the "good ground work" by those concerned who "got the people out."
Subscribe and get Home Delivery of The Independent
Save 36% off the newstand price — that's like 18 FREE issues!